Lesson 4 Introduction

Concepts to Consider for the Lesson

The more things change, the more they stay the same; a recurring theme as we work our way through the textbook. In this lesson we will cover the impact of different cultures on the industry, and how the industry changed the American culture. You will be introduced to the sudden rise in oil demand in the United States and the proliferation of gasoline stations as a result of the increase in mobility/transportation. The Teapot Dome and associated kickback scandals and their impact on individuals, industry, and government will be discussed.

The emergence of nationalism in Persia and Mexico and the Mexican expropriation that sent chills through the oil industry will be discussed, including some discussions on the tensions over stability and sovereignty that led in some cases to revolutions and political unrest and how they impacted investments and oil development. This will highlight the challenges that the oil industry has in being a civilian and military commodity.

In addition, we will learn about the discovery of East Texas oil, how overproduction and hot oil led to the fall in crude prices, and the actions taken by the states of Texas and Oklahoma to stabilize the market. We will also discuss how the federal government had to step in and work with the states to regulate production via unitization and pro-rationing.

Learning Objectives

By the end of this lesson, you should be able to:

• Recall course concepts relating to oil development in the Middle East and the rise of automobiles and gasoline
• Demonstrate an understanding of the role of oil in relation to pivotal events in history
• Discuss the role of oil in business applications, global markets, conflicts, energy security, and various unconventional applications

What is due for Lesson 4?

This lesson will take us one week to complete. Please refer to the Course Syllabus for specific time frames and due dates. Specific directions for the assignment below can be found within this lesson.

Questions?

Each week an announcement is sent out in which you will have the opportunity to contribute questions about the topics you are learning about in this course. You are encouraged to engage in these discussions. The more we talk about these ideas and share our thoughts, the more we can learn from each other.